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HomeMy WebLinkAbout05808P e, RESOLUTION NO. 5808 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND PCL PACKAGING (SOUTH - WEST), INC., A DELAWARE CORPOR- ATION RELATING TO THE TRANSFER OF LAND AT PUEBLO MEMORIAL AIRPORT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE AGREEMENT AND THE WARRANTY DEED THEREIN DESCRIBED BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1. The City Council does hereby find and determine as follows: (a) There now exists in the City of Pueblo and has existed for a number of years unemployment in an abnormal amount injurious to the public health and welfare of the City and its inhabitants constituting an econonic and social liability impairing and arresting the sound growth, economic development and stability of the City. (b) The prevention and elimination of unemployment and the social and economic evils associated therewith are proper public purposes and matters of local and municipal concern which justify the expenditure of public funds. (c) The City is the owner by conveyance from the United States Government of land known as the Pueblo Memorial Airport and it would be in the best interests of the City and in the public interests if portions of the Airport land not required for aviation or airport use be transferred and be reused and developed for industrial purposes. (d) PCL Packaging (South - West), Inc. has determined to construct on land at Pueblo Memorial Airport an approximately IF 44,000 square foot manufacturing facility (herein "Project "). (e) No similar project exists in the City and construction and equipping of the Project will require a large outlay of capital. (f) PCL Packaging (South- West), Inc. believes it will employ and has committed to the City that it will use its best efforts in good faith to employ 60 to 70 persons at the Project within two years after its contruction. (g) The property described in the Agreement between the City and PCL Packaging (South - West), Inc. attached hereto is surplus to the City's needs. (h) The construction of the Project will stimulate and promote industrial activity at Pueblo Memorial Airport thereby creating employment opportunities for the citizens of the City, greater use of airport facilities and increased aeronautical activities. (i) The execution and performance of the Agreement between the City and PCL Packaging (South - West), Inc. are in the best interests of the City and its citizens and will promote the public health, safety, commerce, prosperity and general welfare of the City and its citizens. SECTION 2 The Agreement between the City of Pueblo, a Municipal Corporation and PCL Packaging (South- West), Inc., a copy of which is attached hereto and incorporated herein as if set out herein in full having been approved as to form by the City Attorney, is hereby approved. -2- SECTION 3. The President of the City Council is hereby authorized and directed to execute for and on behalf of the City the.Agreement and the Warranty Deed substantially in the form of Exhibit "A" attached thereto and the City Clerk is directed to affix the seal of the City thereto and attest same. INTRODUCED: April 28, 1986 DOUGLAS L. RING uncilman ATTEST: APPRO D: Ci't Clerk P esident of the City Co ncil -3- e AGREEMENT THIS AGREEMENT entered into as of the T P day.of April, 1986 between the City of Pueblo, a Municipal Corporation (herein "City ") and PCL Packaging (South -West) Inc., a Delaware Corporation, (herein "Company "), WITNESSETH: WHEREAS, City is the owner by conveyance from the United States Government of certain land known as the Pueblo Memorial Airport, Pueblo County, Colorado, and WHEREAS, it would be in the best interest of the City and in the public interest if portions of the Airport land not required for aviation or airport use be transferred and be reused and developed for industrial purposes, and WHEREAS, such reuse and development of portions of the Airport industrial land would increase the tax base and avail- ability of jobs and promote the economic expansion of the City, and WHEREAS, the property described herein is surplus property no longer of need or use to the City, and WHEREAS, Company has proposed a plan for the reuse and development of a portion of the Airport land for industrial use. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, City and Company agree as follows: 1. Sale and Purchase (a) City does hereby sell, and Company does hereby purchase upon the terms and conditions herein, for a purchase price of $10.00 (herein "Purchase Price ") payable as herein provided, approximately 7.4 acres, more or less, of real property located at Pueblo Memorial Airport, Pueblo County, Colorado described in Exhibit "A" attached hereto and incorporated herein (herein "Property "). Company acknowledges that City owns the Property subject to restrictions in the deed to the City recorded in Book 1074, Page 87, Instrument No. 819072 of the records of the Clerk and Recorder of Pueblo County, Colorado. (b) The Purchase Price will be paid in full at closing. 2. Conveyance The City shall convey to Company marketable title to the Property by general warranty deed substantially in the form of Exhibit "A" attached hereto and incorporated herein, free of liens, encumbrances, taxes and assessments. At closing, the deed will be duly executed and acknowledged for recording. 3. Closing The closing of the transaction contemplated by this Agreement shall be in Pueblo, Colorado at a time and date designated by the City, on or before May 30, 1986. The date of closing hereunder may be changed without amendment to this It Agreement by mutual written consent of City and Company. If the closing does not take place on or before May 30, 1986 or such later date as City and Company shall mutually agree to in writing, this Agreement shall become null and void. 4. Conditions Precedent to Closing The Purchase and sale herein contemplated is contingent upon and subject to the follow- ing: (a) Receipt by Company of a standard ALTA owners title insurance policy, or commitment therefor, in the amount of the estimated value of the Property as improved satisfactory to Company, insuring title to the Property free of liens, encumbranc- es, taxes and assessments. All costs and premium for such title insurance shall be paid by Company. (b) Prior approval of the Federal Aviation Administra- tion (herein "F.A.A. ") and its issuance of all necessary Deeds of Release for the Property. (c) Pueblo County granting an exception from its sub- division regulations for the Property or the inclusion of the Property in an approved subdivision. If any of the above conditions precedent to closing are not complied with prior to closing, Company may terminate this Agreement and each party shall be released from all obligations hereunder. 5. City's Representations City represents, warrants and agrees, subject to closing and Company having complied with its obligations set forth in paragraph 6 below, to perform or cause to be performed the following work within the period specified: (a) Within 3 months after closing, reconstruct Lockheed Street to intersect with United Avenue in accordance with City's plans and specifications therefor. (b) Within 3 months after closing, abandon that portion of Braniff Avenue which crosses the Property. (c) Within 6 months after closing, relocate either upon the Property or in the streets adjacent to the Property the sanitary sewer, water, and natural qas lines which cross the Property. (d) As soon as possible after closing, construct approximately 300 feet of railroad spur off the Quick -Car spur along the easterly property line of the Property. The railroad spur will be owned by City but used and maintained by Company. 6. Company's Representations Company represents, warrants and agrees, subject to closing and City having complied with its obligations set forth in paragraph 5 above, as follows: -2- (a) Company will construct and equip on the Property an approximately 44,000 square foot manufacturing facility (herein "facility ") and will operate its facility in a manner which will be advantageous to the economic development of the City and County of Pueblo, Colorado. The facility will be constructed in accordance with plans and specifications, including parking, site development and landscaping plans, approved by City, which approval will not be unreasonably withheld, and in compliance with applicable federal, state, and local law, regulations and codes. Company shall commence construction of the facility within six months after closing and will thereafter diligently pursue its completion and will in a timely and expeditious manner take all action necessary and required therefor. Company estimates that the facility will be operational by February 14, 1987. If Company does not commence construction of its facility within six months after closing, the Property will revert to the City free of all liens, claims, encumbrances, taxes, restrictions, easements and rights of way placed thereon by the acts or defaults of Company. If the Property so reverts to City and if City gives written notice to Company of the exercise of its right of reversion and tenders to Company all sums actually paid to City by Company for the purchase of the Property, Company shall execute and deliver to City a special warranty deed conveying to City marketable title to the Property free of all liens, claims, encumbrances, taxes, restrictions, easements and rights of way placed thereon by the acts or defaults of Company. For purposes of this Agreement the term "commence construction" means the pouring of footings and foundations on the Property. (b) Company shall, at its own expense, cause all utilities and roads used or to be used by the Company on the Property to be extended from the streets adjacent to the Property and installed upon the Property and shall maintain and keep in good repair all such roads and utility extensions. (c) Company shall keep and maintain the Property and all improvements thereon including landscaping in a good, clean, safe and orderly condition, free of waste, rubbish, debris and trash. (d) Waste water discharged from the Property into City's sanitary sewer system and Company's use thereof are limited by and subject to City's sewer user, industrial cost recovery, high strength surcharge, and pretreatment ordinances, rules and reaulations applicable to City's sanitary sewer system at Pueblo Memorial Airport, now in effect or hereafter adopted and amended. (e) Company shall comply with notification and review requirements of the F.A.A. prior to construction, modification or alteration of any building or structure on the Property. (f) Company shall pay to City a combined service fee for services and facilities now furnished by City at the Pueblo -3- V Memorial Airport, namely: sewage treatment, public street maintenance, fire protection, and street lighting based upon $250.00 per acre per annum payable monthly for each acre of land conveyed to Company hereunder. City may, from time to time, reduce or eliminate any or all of the services or facilities presently being furnished and may modify, increase, or decrease the annual combined service fee provided (i) such services and fee shall be non - discriminatory among all other tenants and owners of land at Pueblo Memorial Airport receiving such services and facilities, and (ii) such fee shall be reasonable in relation to City's actual cost and expense of furnishing the services and facilities then being furnished. City's cost may include the cost of capital improvements amortized over the useful life of the improvements. (g) Company agrees and acknowledges that City reserves the right, without any obligation on its part to do so, to main- tain and keep in repair the landing area of the airport and other public areas or facilities at the Pueblo Memorial Airport and to develop, modify, change, relocate, abandon, or improve the Pueblo Memorial Airport, or any part thereof, as it may determine in its sole and absolute discretion, at any time. Company further acknowledges and agrees that City has not made, nor by any provision of this Agreement shall City be construed to have made any representation or warranty to the contrary relating thereto. (h) The Property to be conveyed to Company hereunder is a portion of land City desires to develop into an industrial park. City in developing the industrial park intends to prepare and record appropriate restrictive covenants restricting the develop- ment and use of the land adjacent to the Property to industrial and commercial development and uses which are generally compatible with Company's contemplated use for the Property. City agrees to consult with Company in the preparation of such restrictive covenants for the industrial park. Company shall subordinate the Property to such restrictive covenants and, if requested by the City to do so, will execute and record an instrument subjecting the Property thereto. (i) Company shall maintain and keep in good repair the railroad spur constructed along the easterly property line of the Property and shall enter into all agreements reasonably required by the Atchison, Topeka and Santa Fe Railroad Company and the City for the use of the railroad trackage at Pueblo Memorial Airport and the railroad spur. (j) Company agrees that it will use its best efforts in good faith to employ at its facility on the Property between 60 and 70 employees within two (2) years after closing. (k) At the request of City, Company shall meet and in good faith confer with the City concerning the annexation of the Property to the City when the Pueblo Memorial Airport, or any part thereof including, without limitation, the Property, becomes -4- 1p eligible for annexation. 7. Colorado Law This Agreement shall be governed by the laws of the State of Colorado and shall be construed in accordance therewith. 8. No Waiver No provision of this Agreement may be waived except by an agreement in writing signed by the waiving party. A waiver of any term or provision shall not be construed as a waiver of any other term or provision. 9. Binding Effect This Agreement shall be binding on the parties, their heirs, executors, administrators, successors or assigns. The parties agree to do any and all things necessary to effectuate the purposes of this Agreement. 10. Construction Throughout this Agreement, the singular shall include the plural; the plural shall include the singular; and the masculine and neuter shall include the feminine, wherever the context so requires. 11. Text to Control The headings of sections are included solely for convenience of reference. If any conflict between any heading and the text of this Agreement exists, the text shall control. 12. Severability If any provision of this Agreement is declared by any court of competent jurisdiction to be invalid for any reason, such invalidity shall not effect the remaining pro- visions. on the contrary, such remaining provisions shall be fully severable, and this Agreement shall be construed and enforced as if such invalid provisions had never been inserted in the Agreement. 13. Amendment This Agreement sets forth the entire under- standing of the parties and may be amended, altered or revoked at any time, in whole or in part, only by filing with this Agreement a written instrument setting forth such changes, signed by the parties hereto, except as otherwise provided in Section 3. 14. No Assignment The Company shall not assign this Agreement or any interest therein without the prior written consent of the City. 15. Notices All notices required to be given by this Agreement shall be made in writing and served either by: A. Personal delivery to the party requiring notice; or B. Mailing notice via the U.S. Mail to the last known address of the party requiring notice, by first class mail, postage prepaid. Effective date of the notice shall be the date of the -5- V personal delivery as specified in paragraph A above or four (4) days after the date the notice was deposited in the U.S. Mail as specified in paragraph B above. For purposes of this section, the initial addresses of the parties hereto shall be as follows: PCL Packaging (South -West) Inc. City Manager c/o PCL Packaging City of Pueblo 2300 Speers Road 1 City Hall Place Oakville, Onterio L6L2X8 Pueblo, Colorado 81003 Att: A. G. Thompson 16. Survival of Covenants and Representations. The covenants, representations and warranties made by each party herein shall survive the closing for the benefit of the other party. 17. Non - Exclusive Use of Roads City grants to Company a non - exclusive easement and right -of -way over and across the following City owned roads at Pueblo Memorial Airport, to -wit: Willian White Boulevard, United Avenue, Lockheed Street and Department of Transportation Road, for purposes of ingress and egress to and from U.S. Highway 50 -B to and from the Property. City reserves the right to repair, modify, alter, change, relocate, temporarily close and provide detours therefor, and redesignate such roads. Immediately upon the dedication by the City of the roads, or any portion thereof, to the public, the easement and right -of -way granted by this paragraph shall cease and terminate as to the roads or portions thereof so dedicated. IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officers, and the City has caused this Agreement to be executed by its duly authorized representatives both on the day and year first written above. PCL PACKAGING (SOUTH -WEST) INC. [S E] ATTEST: By Secret ry Richard G. Thompson, P esident CITY OF PUEBLO, A MUNICIPAL CORPORATION [S E A LJ ATTEST: 4liv -Clerk �j�6 /�L�i. 1 /_/_� By President of the City Council aM. N OS0 3651 «- -oPQED r� JUN 1 0 1986 tUEBLO cOUNTY. COLORADO 30,3R2293 .ri _$ WARRANTY DEED 1� IS DEED, made this 0 y day of `�"n�u= , 1986 �5f and between the City of Pueblo, a Municipal Corporation, existing under the laws of the State of Colorado (herein "City ") and PCL Packaging (South- West). Inc., a Delaware Corporation (herein "Company "), W I T N E S S E T H: That the City for and in consideration of the sum of $10.00 and other good and valuable consideration to the City in hand paid by the Company, the receipt whereof is hereby confessed and acknowledged, has granted, bargained, sold and conveyed, and by these presents does grant, bargain, sell, convey and confirm unto the Company, its successors and assigns forever, all the real property situate, lying and being at Pueblo Memorial Airport, County of Pueblo, State of Colorado, more particularly described in Exhibit "A" attached hereto and incorporated herein (herein "Property) , with all its appurtenances, and warrant the title to the same, subject to restrictions, reservations, rights of way, and easements of record and easements for the existing sanitary sewer, water and natural gas lines crossing the Property,, and to the following covenants, conditions, and restrictions which are and shall be construed to be covenants running with the land described herein and binding upon the Company, its successors and assigns and inuring to the benefit of the City, its successors and assigns. 1. City reserves unto itself and its successors and Exhibit "A" aook 2293 FarE829 assigns, for use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Property, together with the right to cause in the airspace above the surface of the Property such noise as may be inherent in the operation of any aircraft now known or hereafter used for naviga- tion of or flight in said airspace, and for use of the airspace above the surface of the Property for landing on, taking off from, or operation on or over the Pueblo Memorial Airport. 2. Company expressly agrees for itself, its successors and assigns to restrict the height of structures, objects of natural growth and other obstructions on the Property, to a height of not more than 4,700 feet above the mean sea level. 3. Company expressly agrees for itself, its successors and assigns, that it will prevent any use of the Property which would interfere with landing or taking off of aircraft at the Pueblo Memorial Airport, or otherwise constitute an airport hazard. In the event this covenant is breached, City reserves the right to enter upon the Property and at the expense of the Company to remove the offending structure or object and to cut the offending growth. 4. The Property and its use are further subject to the following Restrictive Covenants: (a) The Property may be used only for offices and manufacturing facilities. The Property shall not be used for smelting or plating operations, or for the storage or processing of putrescible materials, or for any purpose or business which is considered dangerous or unsafe, or which constitutes a nuisance, or which exceeds the state air pollution control standards for the plant. Gasoline or diesel fuel used in connection with the business conducted on the Property but not for sale at retail or wholesale may be stored on the Property in underground storage facilities. -2- e eo�r2�S3 �rrR2tJ (b) Outdoor storage shall not be permitted. Parking areas for vehicles and roads on the Property shall be paved. (c) The Property shall not be subdivided and no building or structure over sixty (60) feet in height shall be installed or constructed on the Property. (d) No structure or building shall be constructed or installed nearer than 65 feet of the right -of -way line of the frontage street (D.O.T. Road) or thirty -five (35) feet of side or rear streets. There must be installed and maintained a minimum thirty -five (35) foot strip of landscaped ground adjacent to the frontage street and a fifteen (15) foot landscaped strip adjacent to other abutting streets. Minimum side yards set -backs shall be twenty (20) feet. (e) The Property own maintain the Property and a improvements located thereon in condition free of waste, rubbish, �r shall at all times keep and 1 buildings, landscaping and a good, clean, safe and orderly debris and trash. (f) Before commencing the construction, installation or alteration of any building, structure, parking facility, outdoor sign, or other permanent improvement, or landscaping on the Property, the Property owner shall submit to and have approved by the City in writing the site plans and plans and specifications therefor. City's approval will not be unreasonably withheld. In the event the City or its designated representatives shall fail to approve or disapprove such plans and specifications within forty - five (45) days after they have been submitted to the City, such approval will not be required and this covenant will be deemed to have been complied with. All buildings, improvements and activities on the Property shall be constructed and conducted in compliance with all applicable federal, state and local law, regulations, and codes. (g) Waste water discharged from the Property into City's sanitary sewer system and Company's use thereof are limited by and subject to City's sewer user, industrial cost recovery, high strength surcharge, and pretreatment ordinances, rules and regulations applicable to City's sanitary sewer system at Pueblo Memorial Airport, now in effect or hereafter adopted or amended. (h) City reserves the right to waive all or any part of these Restrictive Covenants. 5. This Deed and conveyance is made upon the expressed conditions that Company will construct and equip upon the Property an approximately 44 square foot manufacturing facility (herein -3- aook2293 PArFS21 "facility "). If Company shall not commence construction of the facility on the Property in accordance with plans and specifications therefor approved by City, including parking, site development and landscaping plans, within six months from date of this Deed, the Property, free of all liens, claims, encumbrances, taxes, restrictions, easements, or rights of way placed on the Property by the acts or defaults of Company, will revert to the City. If the Property so reverts to the City, Company, upon payment by City to Company of all sums paid to City for the purchase of the Property, shall execute and deliver to City a special warranty deed conveying to City marketable title to the Property free of all liens, claims, encumbrances, taxes, restrictions, easements and rights of way placed thereon by the acts or defaults of Company. 6. At the request of City, Company shall meet and in good faith confer with City concerning the annexation of the Property to the City when the Pueblo Memorial Airport, or any part thereof, including without limitation, the Property, becomes eligible for annexation. 7. Invalidation of any one of the foregoing covenants, conditions, restrictions or reservations by judgment or court order or otherwise shall in no wise affect any of the other of said covenants, reservations, restrictions or conditions which shall remain in full force and effect. B. City shall have the right to enforce the restrictions, covenants and conditions hereof by injunction or other lawful procedure and to recover damages, costs, expenses, including -4- scox2293 PArr 821 rea�a attorney fees, resulting from any violation thereof or A ; �. arising out of,their enforcement. _• : CITY OF PUEBLO, r _ A MUNICIPAL CORPORATION [S &- ]k L )' , ATT-EST r • . f'' By �-;�•� / re ident of the City Council ;�f C PCL PACKAGING (SOUTH- WEST), INC. r .. Richard G. Thompson, President _.� Sectetar COUN TY -OF PUEBLO ) Y ) ss . $ STATES OF COLORADO ) �.r -the foregoing instrument was acknowledged before me in Pueblo �;16ountx - , _Colorado this 3? day of 1986 by Michael: Occh -iato as President of the Cit Council of Pueblo, , Co•-lorkado •and Marian D. Mead as City Clerk of the City of Pueblo, t `cc ,orado. , ' ` T{7r�tj(es i my hand and official seal. e Y My expires: ( S S Notary Public COUNTY OF �.l!✓v ) ss. STATE OF /She foregoing instrument was /L acknowledged before me in County, State of c��L� this ' day of , 1986 by Richard G. Thompson as President and Gary T. . ,Briggs as Secretary of PCL Packaging (South- West), Inc., a Delaware Corporation.., Y � 'Witness my hand and official seal. t : my-commission expires- G 1 9C Y ^ _ (s °e ACL] Notary Public -5- BOox2293 ma82; EXHIBIT " A " A parcel of land located within the County of Pueblo, State of Colorado, to -wit: A parcel of land located within a portion of the SE 1/4 of Section 30, Township 20 South, Range 63 West of the 6th Principal Meridian, being more particularly described as follows; Beginning at a point on the northerly right -of -way line of United Avenue from which the NE corner of Section 30 bears N 13 35' 40" E. (bearings based on the north line of said Section 30 to bear N 89 59' 27" E. with all bearings contained herein being relative thereto) a distance of 3716.33 feet; thence along the said northerly right -of -way line the following three (3) courses: 1) S 430 24' 59" W, a distance of 145.07 feet; 2) on the arc of a curve to the right whose radius is 772.20 feet; a distance of 606.56 feet; 3) S 88 25' 20" W, a distance of 60.03 feet to a point on the easterly right -of -way line of Lockheed Street; thence along the said easterly right -of -way line the following three (3) courses: 1) N O1 34' 40" W, a distance of 283.73 feet; 2) along the are of a curve to the right whose radius is 260 feet, a distance of 204.10 feet; 3) N 43 23' 57" E, a distance of 350.27 feet; thence S 460 28' 13" E, a distance of 545.53 feet to the Point of Beginning. Said parcel contains 7.16 acres.